Are you dreaming of owning a car without taking a loan? The 12x12x12 SIP formula can make it possible. By investing Rs 12,000 monthly for 12 years with an expected return of 12 per cent per annum, you can build a corpus of approximately Rs 37 lakhs. This disciplined approach helps you save and grow your wealth over time. With the power of compounding, your money works for you, bringing your dream car closer. Let’s explore how this simple yet effective formula can help you achieve your goal of owning a car without debt.
Here, we will assume that the car’s current price is around Rs 17 lakh. Assuming an annual inflation rate of 6 per cent, the car may cost around 25 lakh in the upcoming 10-12 years. Therefore, here we have aimed to generate a higher corpus considering the inflation using the 12X12X12 SIP formula. Take a look!
What is Systematic Investment Plan?
A Systematic Investment Plan (SIP) is a method of investing in mutual funds where you can invest a fixed amount regularly. Once you apply for one or more SIP plans, the amount is automatically debited from your bank account and invested in the mutual funds you have purchased at the predetermined time interval.
Understanding compounding
Compounding generates earnings not only on the principal amount but also on the accumulated growth during the investment period.
What is 12x12x12 SIP formula?
The first 12 represents the investment amount, you need to invest Rs 12,000 every month. The second 12 stands for assumed annualised return, which is 12 per cent. Last but not least, 12 represents the investment period of 12 years.
How does 12X12X12 SIP formula work?
You have to invest Rs 12000 in a monthly systematic investment plan (SIP) for 12 years at 12 per cent annualised return.
Plan for your dream car today with 12x12x12 SIP strategy
If you start investing Rs 12,000 every month from the age of 20, by the time you are 32, you may end up building around Rs 36 lakh corpus. Even if you start at 25, by the time you are 37, you can plan to own your dream car with a loan. Similarly, you can find out at what age you can reach this target by calculating according to your current age.
Turn Rs 12,000 monthly investment into Rs 37 lakh corpus
If you start a bit later, which is at the age of 30, you can reach the target corpus by the time you turn 42.
12X12X12 SIP calculation conditions
- Monthly investment: Rs 12,000
- Annualised return: 12 per cent
- Investment period: 12 years
12X12X12 SIP formula: What will be your total investment amount?
Using this formula, if you start a monthly SIP of Rs 12,000 and continue for 12 years, your estimated investment amount will be Rs 17,28,000.
12X12X12 SIP formula: What will be your capital gains?
Using this formula, if you start a monthly SIP of Rs 12,000 and continue for 12 years, your estimated capital gains can be Rs 19,69,147.
12X12X12 SIP formula: What will be your corpus after 12 years?
Using this formula, if you start a monthly SIP of Rs 12,000 and continue for 12 years, your estimated corpus can be Rs 36,97,147.
Disclaimer: Not financial advice; invest at your own risk.
Anurag Dhole is a seasoned journalist and content writer with a passion for delivering timely, accurate, and engaging stories. With over 8 years of experience in digital media, she covers a wide range of topics—from breaking news and politics to business insights and cultural trends. Jane's writing style blends clarity with depth, aiming to inform and inspire readers in a fast-paced media landscape. When she’s not chasing stories, she’s likely reading investigative features or exploring local cafés for her next writing spot.
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
